NNPC loses out on N45bn oil revenue, as no one showed interest in Nigerian oil

The Nigeria National Petroleum Corporation (NNPC) found it difficult to get buyers for Nigerian oil produced in the month of September depriving the government of much-needed revenue.

NNPC revealed this in its latest report to the Federation Account allocation Committee (FAAC) released at the weekend on its website.

According to the report, no oil export receipt was recorded in September despite a production of 1.41 million barrels of oil.

The 1.41 barrels of oil in the month of September was worth over 44.7 billion with oil price averaging $75 per barrel.

Part of the report reads: “on sale receipt, no Crude Oil export revenue for the month of September 2021.”

The report also noted that the overall NNPC crude oil lifting of 11.49Mbbls (Export & Domestic Crude) in September 2021 recorded 98.5 percent increase relative to the 5.79Mbbls lifted in August 2021.

However, NNPC said it made the sum of N252.96bn (N252,968,629,898.13) from the Gross Domestic Crude Oil and Gas revenue for the month of October, 2021.

Breakdown shows Gas: Domestic Gas and other receipts in the month was N6.78 billion while the Domestic Gas (NGL) was N4.07 billion.

Read also: NNPC insists on fuel subsidy removal as payments exceed N1tr in 2021

“NLNG: Feedstock valued at $59.43 million was sold to NLNG during the period out of which $52.57 million was received during the month.

Also, the sum of $95.63Mn was recorded being miscellaneous receipts, Gas and Ullage fees and Interest income for October 2021”.

NNPC also noted that during the month of September strategic holding cost, pipelines repairs gulped N7.75bn(N7,757,631,778.84).

The report added: “The various pipelines come at a cost worth N143.38 million (N143,386,571.87) and value shortfall of N163.7bn (N163,709,314,928.61),”

“This comprised of the N123.7bn (N123,709,314,928.61) for September 2021 and N40bn value shortfall deferred in June 2021.

“The October, 2021 value shortfall of N199,007,758,422.75 is to be recovered from the November, 2021 proceeds due for sharing at the December, 2021 FAAC meeting.”

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